GoldSpot Discoveries Corp. Announces Appointment of Frank Holmes as Independent Chairman and Strategic Partnership with Manitou Gold
GoldSpot Discoveries Corp. (TSXV:SPOT) (“GoldSpot” or the “Company”), is pleased to announce that, in connection with the completion of its qualifying transaction, U.S. Global Investors Inc. (“U.S. Global”) has competed a strategic investment in the Company. U.S. Global has exposure to 7,107,871 shares of GoldSpot, or approximately 8% of outstanding shares of the Company. GoldSpot commenced trading on the TSX Venture Exchange under the ticker symbol “SPOT” effective at the open on Feb. 21, 2019.
GoldSpot Discoveries Corp. (TSXV:SPOT) (“GoldSpot” or the “Company”), is pleased to announce that, in connection with the completion of its qualifying transaction, U.S. Global Investors Inc. (“U.S. Global”) has competed a strategic investment in the Company. U.S. Global has exposure to 7,107,871 shares of GoldSpot, or approximately 8% of outstanding shares of the Company. GoldSpot commenced trading on the TSX Venture Exchange under the ticker symbol “SPOT” effective at the open on Feb. 21, 2019. This follows the completion of a $7.56-million equity financing, closed on Feb. 1, 2019.
In connection with the investment, Frank Holmes, chief executive officer and chief investment officer of U.S. Global, a leading mutual fund and asset management firm, has agreed to serve as a director of GoldSpot and has been appointed the independent chairman of the board of directors of the Company. Mr. Holmes is a thought leader in both the technology and mining space, and a pioneer in using a quant-approach to investing. Frank is a sought-after keynote speaker at international investment conferences and a regular guest in business media. His Frank Talk CEO Blog is one of the most widely read in finance.
Denis Laviolette, GoldSpot’s CEO and president, commented: “We are ecstatic to have Frank come on aboard. He will bring significant experience and leadership to the team and help with getting our message out to a broader audience. Frank understands how disruptive GoldSpot will be to both the drill bit and mining investments, and the many synergies between our Resource Quantamental platform and his umbrella of funds. 2019 is setting up to be a great year for GoldSpot.”
In addition, GoldSpot is pleased to announce that it has entered into a strategic partnership with Manitou Gold Inc. (“Manitou”). This partnership will bring GoldSpot’s holistic ‘whole earth’ exploration modelling and machine learning technology into the junior mining space for the first time. To date, GoldSpot has only worked with established mining companies who have more sizeable production and asset profiles.
In connection with the partnership GoldSpot has entered into an investment agreement (the “Investment Agreement”) with Manitou and other related agreements. GoldSpot will invest an aggregate of $580,000 into Manitou to purchase 7,250,000 units of Manitou at a price of $0.08 per unit. Each unit will consist of one common share of the Manitou and one-half of one share purchase warrant (each whole such share purchase warrant, a “Warrant”), with each Warrant entitling GoldSpot to acquire one additional common share of the Manitou at an exercise price of $0.15 until the date which is three years from the closing of the investment.
In addition to the subscription by GoldSpot of 7,250,000 units, the Investment Agreement and related agreements provide for the grant to GoldSpot of two options to each purchase a 0.25% net smelter return royalty with respect to each of Manitou’s Goudreau, Rockstar, Midas, Dog Lake, Canamerica and Sherridon properties, for consideration of $500,000 each and, concurrently with the execution of the Investment Agreement, the Company has entered into (i) two royalty agreements providing for the grant to GoldSpot of an aggregate 0.5% net smelter return royalty on all metals produced from Manitou’s Kenwest property; and (ii) a services agreement pursuant to which Manitou will retain GoldSpot for a period of one year in order to provide services related to the evaluation and identification of possible mineralization and drill targets on Manitou’s properties.
The closing of Manitou’s offering as well as the Investment Agreement and related agreements remain subject to various closing conditions, including the approval of the TSX Venture Exchange.
About GoldSpot Discoveries Corp.
GoldSpot is a technology company that leverages machine learning to reduce capital risk, while working to increase efficiencies and success rates in resource exploration and investment. GoldSpot combines proprietary technology with traditional domain expertise, offering a front-to-back service solution to its partners. GoldSpot’s solutions target big data problems, making full use of historically unutilized data to better comprehend resource property potential. GoldSpot has developed a monetization strategy into multiple verticals of the mining and investment industry, including service offerings, staking and royalty acquisition, and the development of its own artificial-intelligence-driven trading platform.
For further information please contact:
Denis Laviolette, President, CEO and Director
GoldSpot Discoveries Corp.
Forward Looking Statements
This press release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.
The TSX Venture Exchange Inc. has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved the contents of this press release.